Your loan officer can give you an estimate, but your total closing costs including prepaid insurance and taxes will run about 5-6%, plus your down payment.

Closing costs are generally broken down in to loan costs, pre-paids, and taxes and fees.  

They would explain that as the lack of an escrow account puts them at higher risk.The general term for the money you have to bring to closing for the escrow account is called "pre paids".  

I pay $100.00 a month in management fees, for each of my properties, actually prepaid for the year, just like ripping off the bandaid so to speak.Money well spent IMO.

So, if there is a balance allocated to the lump sum remaing to be applied to the month missing payments, based at fair market rents, you may be sunk as your pre-paid rents are your liability to provide housing.

As a Florida Mortgage Broker, I see so many borrowers and/or buyer agents completely fumble the ball at this point.If you are paying cash of the property or planning and/or can put 20%, 30% or 50% down, then take the 10k off the sales price.BUT...if you are over 45 yrs old, with less than 200k in retirement and have Credit Card debt and obtaining a loan with less than 20% down...take the 10k as a SELLER CREDIT to pay towards buyer's closing costs and prepaids 

Some prepaid CC don't report, so make sure they do.

Are you including your prepaids in the closing costs?

Please also verify the accuracy of this information at the time you are considering these options as guidelines change.price Decorating allowancesRepair allowancesMoving costsNote—a dollar for dollar sales price reduction is also required for - Excess rent credit and gift funds not meeting FHA requirements Contributions exceeding the actual cost of prepaid expenses, discount points and other financing concessions Credit Requirements Required is 600.

That puts construction total costs in the $158k range.Now you list the house for $230k, and say you sell it at full ask, no seller prepaid money.